Manufacturing industry receives timely windfall

5th February 2016

There is no doubt the global manufacturing industry continues to go from strength to strength. With emerging markets in both the Middle East and Asia, it is important that Australian businesses keep up with latest trends and investments.

According to Research and Markets, the global manufacturing execution system market has the potential to reach US$12.6 billion over the next five years. This marks a compound annual growth rate of 10.85 per cent - highlighting the ever-changing nature of this sector.

The manufacturing industry has received a timely boost.

$30 million grant programme - a game changer?

To keep Australian businesses competitive in the global market, the federal government has taken an opportunity to provide a significant boost to enterprises in two states. The $90 million Next Generation Manufacturing Investment Programme is designed to support South Australia and Victoria's valuable manufacturing industries by providing grants for technological and project investment.

"This competitive grants round will support more businesses to invest in manufacturing operations."

The most recent announcement is for round two where businesses can apply for grants worth between $500,000 and $2.5 million (totalling $30 million overall). Earlier, in round one, sectors were provided a range of grants to support development and growth.

Minister for Industry, Innovation and Science Christopher Pyne explained that businesses are now able to apply for grants either individually or for a specific project.

"This competitive grants round will support more businesses to invest in manufacturing operations driven by technological innovation, advanced processes, and a highly skilled workforce. Helping these firms invest in extending their manufacturing capabilities will deliver strong economic benefits for South Australia and Victoria," he said.

"I encourage any eligible businesses looking to invest in high value manufacturing capabilities to apply for this new funding round, which will provide an additional $30 million in support."

Manufacturing in the 21st century

In a trend that many industries are experiencing, development in the manufacturing industry is fast-paced. This means it can be difficult for business leaders to become true innovators. At present, Australia's sector is struggling, as highlighted in Deloitte's 2016 Global Manufacturing Competitive Index.

Out of the 40 countries, Australia finished a distant 22nd - behind the likes of Malaysia, Vietnam and India. In fact, this isn't projected to improve either.

As such, businesses must work hard to develop and adopt industry-leading technologies and processes. This is where the Next Generation Manufacturing Investment Programme comes in handy, but also the services of Advanced Business Manager.